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Finance math homework help?

Mara took out a $6,000 loan for 5 months and was charged simple interest.

The total interest she paid on the loan was $195.

As a percentage, what was the annual interest rate of Mara's loan?

2 Answers

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  • 3 weeks ago
    Favorite Answer

    (12/5) * (195/6000) = 0.078 = 7.8%

  • 3 weeks ago

    $195 charged over 5 months is $39 in one month

    i.e. $468 over twelve months

    so, 468/6000 => 0.078

    Hence, 7.8% p.a.

    :)>

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